What About Buying property in Cyprus ?

Buying property in Cyprus is attractive to many buyers who are attracted by the fairly high European standard of living.

Cyprus issaid to be the only Eastern Mediterranean country that offers a quality of life to which most British and Americans are comfortable with.With its good infrastructure, high-quality hospitals, excellent shopping and where English is widely spoken.

Many foreigners have been attracted by the many days of sunshine annually and the islands low flat tax rate for non-Cypriot residents of just five per cent.

An added bonus is the low cost of living that has encouraged many British citizens to buy a second home in Cyprus.

Most of the property is relatively new being under 20 years old.  But the old walled area of Nicosia, with its traditional stone houses, is becoming popular with those looking to do renovation.

In the tourist resort of Paphos, on the Cyprus islands west coast, an average two-bedroom apartment costs CY67,000, a two-bedroom holiday villa CY130,000, and a three-bedroom house from CY185,000.

In Larnaca, a town becoming increasingly popular with Britons due to keen pricing, a two-bed apartment costs from CY42,000, and a two-bedroom holiday villa from CY97,000, an increase on the previous year.

"Prices have gone up rapidly in the last few years with increases of 20 per cent a year not an exaggeration," said Marius Vassiliou, manager of Ectoras Developers, "Some people who bought a few years ago have seen the value of their property double."

Prices look set to continue to rise too, fuelled by the investment opportunities that joining the EU will bring by the opening up of the islands previously closed buy to let market.

"The rule of thumb for investors is to buy a two-bedroom property because they let, and sell, the easiest," explained Peter Katsantonis of real estate agents Leptos UK, "If you can afford it, buy a place with its own pool and as near to the sea, town, nightlife and amenities as possible as this will again be attractive to tenants."

Once an offer is made on a property, it is normal to pay a deposit of between CY1,000 and CY2,000 to reserve the property. Upon signing the contract the buyer pays 20-30 per cent of the value of the property, and the balance thereafter.

With the joining of the EU, certain property ownership restrictions currently in place will be relaxed. At present, however, a non-Cypriot is: permitted to buy for personal use a house or piece of land up to 2,675 sq m, not allowed to let the property for personal gain.

When buying property in Cyprus you should know the basic document requirements that you should process before delving into a business property deal.

First thing is the Application to the Counsel of Ministers, this should be submitted To be submitted through the relevant District Officer and the Minister of the Interior with details of the applicant and his financial standing, the property, the Owner, the sales contract and the terms of payment, the type of purchase.

An Application to the Central Bank for confirmation of importation of foreign exchange for the purchase that should be submitted together with Confirmation from the Commercial Bank that the foreign exchange for the purchase was imported.

Always make sure that after paying the full payment of the property that the Application to transfer registration of ownership has already been fully processed and accomplished.

This Application should be personally submitted to the District Lands Office together with the purchasers identity card or passport number, the Title Deed, copy of the Council Ministers approval, confirmation from the Central Bank re importation of foreign exchange, proof of payment of all property and other sundry town taxes to date.

Here in Cyprus, the Purchaser and Seller may give specific Powers of Attorney to a third party to attend and affect transfer on their behalf.

Buying property and homes in Cyprus is becoming a more attractive proposition to foreigners from Britain and US.